# nakfa > currency of Eritrea **Wikidata**: [Q171503](https://www.wikidata.org/wiki/Q171503) **Wikipedia**: [English](https://en.wikipedia.org/wiki/Eritrean_nakfa) **Source**: https://4ort.xyz/entity/nakfa ## Summary The **nakfa** is the official currency of Eritrea, introduced in 1997 and issued by the Bank of Eritrea. It is the primary medium of exchange in the country and replaced the birr, which was used in Eritrea prior to the introduction of the nakfa. ## Key Facts - The nakfa became the official currency of Eritrea on 8 November 1997. - It is classified as a generally accepted medium of exchange for goods and services. - The name "nakfa" is also the name of a city in Eritrea, from which the currency's name is symbolically derived. - The currency replaced the bir (currency of Ethiopia) in use before Eritrea adopted the nakfa as its national currency. - The Bank of Eritrea is the central bank responsible for issuing and managing the nakfa. - The Bank of Eritrea was established in 1914 and is the institution that issues the currency on behalf of the government of Eritrea. - The nakfa is part of the Eritrean national identity, representing a shift from the former Ethiopian birr (also called "bir") post-independence. - The term "nakfa" is also the name of a city in Eritrea, symbolizing the currency's origin and cultural significance. ## FAQs ### What is the nakfa? The nakfa is the official currency of Eritrea, issued by the Bank of Eritrea starting on 8 November 1997. It replaced the Ethiopian birr (bir) after Eritrea's 1997 independence from Ethiopia, symbolizing the country's economic autonomy. ### What is the relationship between the nakfa and the birr? The birr was the currency used in Eritrea before the introduction of the nakfa. The transition from the birr to the nakfa marked a significant economic shift, aligning with the country's new national identity. ### What is the role of the Bank of Eritrea? The Bank of Eritrea, established in 1914, is the central bank responsible for issuing and managing the Eritrean nakfa. It ensures the currency's stability and regulates financial policy. ### Why was the nakfa introduced? The nakfa was introduced to replace the birr, which was previously used in Eritrea, as part of the country's post-independence monetary restructuring. ### What is the significance of the name "nakfa"? The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical and national significance to Eritrea. The name was chosen to honor the city and its role in the country's struggle for independence. ### What distinguishes the nakfa from the birr? The birr was the official currency of Ethiopia before Eritrea's independence. The transition to the nakfa symbolized a shift from a shared regional currency to a uniquely Eritrean one, reflecting national sovereignty. ### How is the name "nakfa" related to the city of Eritrea? The name "nakfa" is derived from the city of Nakfa, where the currency was first issued, symbolizing the city's historical role in the Eritrean struggle for independence. ## Why It Matters The nakfa plays a central role in Eritrea's national identity and economic independence. It represents a shift from the previously shared Ethiopian birr to a uniquely Eritrean currency, allowing the country to assert economic self-reliance. The name "nakfa" is also the name of a city in Eritrea, symbolizing its historical and cultural significance. ## Notable For - The name "nakfa" is derived from the city of Nakfa in Eritrea, which is of historical significance. - The city of Nakfa is located in the Anseba region of Eritrea. - The Bank of Eritrea is the central bank responsible for issuing and managing the nakfa. - The bir, previously used in Eritrea, was replaced by the nakfa to assert a uniquely Eritrean currency. - The currency is part of Eritrea's national identity, symbolizing the country's economic independence from the birr. ## Body ### History The nakfa was introduced on 8 November 1997, replacing the Ethiopian birr (bir) as the official currency of Eritrea. The name "nakfa" is derived from the city of Nakfa, Eritrea, which holds historical significance in Eritrean independence. The city is also the location where the currency was introduced. ### Economic Context The transition from the birr to the nakfa marked a significant economic shift in 1997, aligning with Eritrea's post-independence identity. The Bank of Eritrea, established in 1914, is responsible for issuing and managing the nakfa, ensuring its stability and value. ### Ecosystem The nakfa is issued and managed by the Bank of Eritrea, which was established in 1914. The bank ensures the currency's stability and regulates financial policy. The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. ### Related Entities - The city of Nakfa, Eritrea, holds historical significance in Eritrean independence. - The Bank of Eritrea is the central bank responsible for issuing and managing the nakfa. - The bir was the currency of Ethiopia before Eritrea's independence. - The name "nakfa" is derived from the city of Nakfa, Eritrea, where the currency was introduced. - The bank ensures the currency's stability and value, aligning with Eritrea's post-independence identity. ## Additional Information - The bank ensures the currency's stability and regulates financial policy. - The name "nakfa" is derived from the city of Nakfa, Eritrea, which holds historical significance. - The currency is part of Eritrea's national identity, symbolizing the country's economic independence. - The transition from the birr to the nakfa marked a significant economic shift, aligning with Eritrea's post-independence identity. ### Architecture The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. The bank ensures the currency's stability and regulates financial policy. ### Community The name "nakfa" is derived from the city of Nakfa, Eritrea, which holds historical significance in Eritrea's post-independence identity. ### Related Projects The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. The bank ensures the currency's stability and regulates financial policy. ### Notable People - The name "nakfa" is derived from the city of Nakfa, Eritrea, which holds historical significance. - The bank ensures the currency's stability and regulates financial policy. ### Related Projects The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. - The bank ensures the currency's stability and regulates financial policy. - The name "nakfa" is derived from the city of Nakfa, Eritrea, which holds historical significance. - The bank ensures the currency's stability and regulates financial policy. ### Related Entities - The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. - The bank ensures the currency's stability and regulates financial policy. - The name "nakfa" is derived from the city of Nakfa, Eritrea, which is of historical significance. - The bank ensures the currency's stability and regulates financial policy. ## References 1. Freebase Data Dumps. 2013 2. Quora